Supply Chain Progress towards Aeronautical Community Excellence www.space-aero.org

An efficient Supply Chain to meet An efficient Supply Chain to meet new global challenges new global challenges 

René Colin René Colin SPACE Operating ManagerSPACE Operating Manager

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AgendaAgenda

SPACE organization

SPACE operation and activities

SPACE projects and results

CONCLUSION

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Organization

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Why?

Supply Chain Progress towards Aeronautical Community Excellence www.space-aero.org

Who?

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CIDAerospace standards

Training

Pool of Resources

Sharing best

practices

SalesCSRMfg

QCShip

Critical Measures and Goals

16 8

14.718511.4481

Capability PlotProcess Tolerance

SpecificationsStDev: 0.54507

III

III

141312

Capability Histogram

Process Capability

Establish Entitlement

GOAL Sales

CSR

Mfg

QC

Ship

As Is

Should Be

CompetitiveAdvantage

($$$$)

Improvement projects

Benchmarkmeasurement

Consultant refering

SPACE services at a glance

coaching

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Operations and activities

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• A service offered by SPACE to the associate member (sub-tier supplier), to develop an action plan, to help this member to improve its efficiency

A diagnostic

• A certification system• A rating system

… which is not

and is developped by

• “Supply Chain Management Handbook”Supplier Selection and Capability Assessment

The Associate members can benefit from support

what

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Four domains assessed:• Process

• People & Organisation

• Tools & Data

• Performances Metrics

Five levels of maturity

Expectation

Supplier performance

1: Undefined and not capable2: Defined and applied, but not 100% efficient or not applied everywhere in the company3: Defined, applied and effective4: Predictable 5: Optimised

Areas of potential Supplier Development if

deemed necessary

ConceptConcept

www.iaqg.org - publications9

what

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Usual strengths and Usual strengths and weaknessesweaknesses

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what

1. Lack of strong planning (tier-1 flow down)

2. No flow management

3. Weak supply chain monitoring

4. Non efficient physical organization

5. Limitated preventive actions

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No anticipation

No realistic schedules

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what

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PRIORITY MANAGEMENT CAPACITY MANAGEMENT

Demand Management

Capacity Requirements

Planning

Resources Planning

Sales & Operations Planning

Master Production Schedule

Execution & Control of Operatins

Materials Requirements

Planning

Business Planning

Input/Output Control

Rough cut Capacity Planning

OF OA

No SOP (Sales & Operations Planning) : only short term, no anticipation, no vision

No MPS (Master Production Schedule) : the input for MRP is the customer procurement plan :

nervousness, no realistic plan, so not realised, generates WIP, delays

May contribute up to 30% OTD

- 1 -Planning

APICS standards

12

what

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No WIP control : in consequence the WIP is high The lead time is high

Flow is generally driven by a push system

No level flow on the shop floor

Permits to save 30% of WIP

- 2 -Flow management Input/Output ControlInput/Output Control

WIP

FinishedFinishedproductsproducts

Shop Floor

ReleasedReleasedordersorders

MPS MRP

PlannedPlannedordersorders

= order releasing

= Finishedorders

Pull Sytems

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what

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No formal supplier approval

No strategy for reducing the supplier base

The supplier performance is often measured but not communicated nor used for improvement

Major issue in assembly workcenters

- 3 -Suppliers management

Supplier Performance Management

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what

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Layout is generally triggered by process (job shop and not flow shop)

No visual management Effort to be done on house-keeping

(5S)

Lead time can be reduced by 30%

- 4 -Physical flow

Lean – TPS (Toyota Production System) standards

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what

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No structured and systematic method for problem solving

Problems are identified and highligted (usually measured)

The metrics are not systematically used to manage and to improve the business

Basics of quality improvement

- 5 –Quality – problem solving

Quality tools – Problem solving

16

what

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PROJECTS and RESULTS

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Executive Committee

Executive MembersDesignate

representatives

Propose suppliers &Provide experts

Manages projects

ExpertsAssociate

Members

Operating Manager

Push process how it works?

30 rolling projects30 rolling projects

Supported by the Supported by the executives’ experts executives’ experts

networknetwork

For the benefit of For the benefit of customers and supplierscustomers and suppliers

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Results - exemples

Déc 06

Fev 07

Mar 07

May 07

dec 07

Plan d’action

Roadmap

ANALYSIS

DESIGN

Implementation phase

Work package 1 Demand management

Work package 2 – QA & Lean management

Work package 3 –Operational management

KOM

Work package 4 Suppliers & purchasing

COPIL

July 07

sept 07

Follow up

phase

march 08

nov 07

oct 07

2008supplier

ActionPlan

Follow up

ThalesExpert

Messier-BugattiExpert

AirbusExpert

Thales/Airbusexperts

Electronic Units Customer Returns: Month Returns of Units manufactured till 12 months before vs. Month Delivery

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

6,00

gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 set-08 ott-08 nov-08 dic-08

Month

% 12 Months Rolling

12 Months Rolling 5,24 5,07 4,76 4,60 3,28 5,01 3,76 4,04 4,24 1,90 2,86 2,34

gen-08 feb-08 mar-08 apr-08 mag-08 giu-08 lug-08 ago-08 set-08 ott-08 nov-08 dic-08

Average 2008:3,93 %

Last 3 months average: 2,37%

Efficient Master Production

ScheduleMRPII implementation OTD

Problem solving methodologies

Returns

When methodologies support progress Puntualità delle consegne 2008(Consegne fino a 7 giorni successivi alla data prevista dall'ordine)

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

45,00

50,00

55,00

60,00

65,00

70,00

75,00

80,00

85,00

90,00

Mese

%

[d<0+0<d<7] 59,00 67,02 75,25 74,68 67,97 80,03 66,31 77,59 74,08 84,70 84,80 84,43

Tgt 1 85 85 85 85 85 85 85 85 85 85 85 85

Gennaio Febbraio Marzo Aprile Maggio Giugno Luglio Agosto Settembre Ottobre Novembre Dicembre

OTD

SELHA(France) End 2006

End 2007

Variation

End 2008

Variation

Raw materrial inventory

NC NC -11% NC -20%

Work In Process NC NC -24% NC -18%

Suppliers critical delays 200 9 -96% 10 +11%

Deapth of delay (days) 15 5 -66% 4 -20%

Suspended Works orders (shortage)

250 110 -56% 80 -27%

OTD 64% 84% 31% 90% 7%

Schedule adherence 62% 88% 42% 92% 5%

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Push process: results after 1 year project After 1 year average

84%Starting average

62%

+35%

Starting average31700 ppm

After 1 year average18700ppm

-41%

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Steering Committee

InstitutionsDesignate

representatives

Manages projects

ConsultantsParticipants

Operating Manager

Pull process how it works?

60 rolling projects60 rolling projects

Supported by the Supported by the executives’ experts executives’ experts

networknetwork

For the benefit of For the benefit of customers and supplierscustomers and suppliers

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For each supplier a customized industrial improvement project

Diagnostic Action PlanImplementation supported by 20

days of consulting

For each cluster a customized action on the relationship (customer/suppliers)

Under the steering of SPACE Methodology Referral service Reporting

Collectives activities: Training Forums Benchmark

Funding Région, States, Europe (80%) SME(20%)

Customer’s local suppliers

Porteur de Projet

Fx

F1

F2

F3

F4

Porteur de Projet

Fx

F1

F2

F3

F4

Porteur de Projet

Fx

F1

F2

F3

F4

Aerolean’k: 58 SMEs

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Contact in progressIn Marocco

Aerocaplean ASTech

30 suppliersTwo-year project

Budget 900k€Fundings Region/state

SPACE sponsor

Contact in progress

Rhone-Alpes (40

suppliers)

Aerolean’kAerospace valley

58 suppliersTwo-year project

Budget 1,2M€Fundings Region/state

SPACE leader/consultant

Contact in progressbavAIRia

Pull deployment : up to100 suppliers end 2011

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Development and Conclusion